Scary

And since California is basically the size of a country all by itself, it’s kind of difficult to be optimistic about a quick rebound of housing prices on the West Coast. You could give AIG $25 billion a day for the next year and it wouldn’t help much, unless they hold all their parties in vacant houses rented for the occasions.

This socialism stuff is hard. Can I interest you in a used car (company?)

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Why are/did people choose ARM’s during times of low interest rates? ARM were developed during a time of very high interests rates to help people who were locked out of participating in home ownership. They were good for people who had rising income expectations, they were good during times of high interest rates, and they were good for those who were expecting short-term homeownership. Then, choosing an ARM could have made sense, provided the proper safeguards were in place, like interest rate caps and monthly payment caps.

I’m not sure who was/is getting ARM’s these days. It doesn’t make any sense.

We’ve got this trend of politicians rationalizing bailing out big business mortgage holders (funny they are also big campaign donators and fellow golf club members)

For some reason, it was decided in the current economic crisis to bail out banks and stockbrokers. But when we started talking bailout there was some talk about helping out the great unwashed with problem mortgages. After all our Neocon friends claim ago that ARM folks are the cause of the crisis.

So I took a quick look at it

Total US mortgages $12000 billion, total late a payment of so 9%, total in foreclosure 3% (data from summer 2008), average mortgage rate 6%

To my surprise, it would cost only $22 billion annual (12000x.03x.06) to keep up the payments on foreclosures and 66 billion on those problem mortgages a month or two behind. This is a lot less than the current plan of handing out $750 billion to banks to cover executive bonuses. We could tell the bankers “You’re covered dude. We’ll make sure your mortgagee’s make every single payment”. When they get on their feet we’ll recover our losses from them directly. Call it an expansion of the student loan program.

Because this seems so simple and is never talked out I think rather than mortgages, the bailout money is being used to cover the banks massive losses in oil speculation.

Glenn Beck, who talked to comptroller David Walker more than one year ago about our $50 trillion entitlement liability, has been very good about how very bad and scary this is. And how much worse it will be. Paulson-Pelosi have added not $700 billion, but another $5 trillion, since September, to our crisis du jour.

Beck is followed on KTTH by a big fat idiot who, for the second time in recent weeks, lied about Gregoire’s 2004 landslide. Trying to build an analogy between WA-2004 to MN-2008, Rush said again that 2004’s Democrats here manufactured more votes than our state’s population. Or something like that. Hope Senator Franken was taking notes.

I-1000 Kirby Wilbur. The big guy the big guy who repeats himself who repeats himself is probably too boring to live, and is certainly too boring for a four-hour show (that’s two hours of reps in four hours, a crap/content ratio almost as bad as Limbaugh’s). Kirby’s better at spawn than spew: he begat Goldstein; he begat Burbank; he begat Boze. Take Wilbur off the air and put him out to stud. Problem solved.

Finally, back away from the stupid blogs, this one in particular. Read, for a change you can believe in. Read a good book: America Between the Wars: From 11/9 to 9/11. Written by Derek Chollet (who worked for Goldy’s love daddy, John Edwards) and James Foldgeier. Safe to say the authors are bent left, but their book plays it straight. What a concept.

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